Expanding your Business
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- Allison Ellis
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1 Expanding your Business
2 Starting Your Own Business!!!!! Does It Feels Like This?
3 Franchising Franchising Can be your Key to Small Business Success!!!! Magical Matching Machine Franchisees Wanted
4 What is Franchising?? Franchising is the practice of using another company s successful business model to your own benefit OR Distribution Method Uniform Rules, Government Regulated Over 3000 Franchises in 80 Industry Groups New Franchisee every 8 minutes A form of business organization in which a company (franchised business) which already has a successful product or service (the franchisor) enters into a continuing contractual relationship (franchise agreement) with other businesses (franchisees) operating under the franchisor's trade name (license) and usually with the franchisor's guidance (training) in exchange for a fee. (royalty) Examples: Subway, McDonalds, 7-Eleven
5 Benefits of Franchising Franchising Can be your Key to Small Business Success 1. Franchising will help you to own your own business without requiring your time and effort to create, research and test a new business idea 2. Becoming a franchisee will allow you to reduce your risk as a new business owner. 3. Expect lower costs as a franchisee due to group buying power. 4. Franchisees have the power of national brand recognition. 5. Business ownership is a way to take back control of your life. 6. What are your wealth creation goals?
6 Why is franchising popular? Easy to set up Best practices immediately no learning curve Relatively low set-up costs Brand recognition multiple locations Purchasing power Consumer confidence - no surprises Manager is the owner own boss Combined marketing, branding, etc. Increased profit = lower than royalties Ongoing support & training 95% of all franchises are still in business after 5 years
7 WHY ARE FRANCHISES SO SUCCESSFUL?
8 Economic Impact of Franchises Businesses The direct impact of franchise businesses (What occurs in franchise businesses) The total impact of franchise businesses (What occurs because of franchise businesses) 767,483 operating franchised businesses 9,797,117 jobs $229.1 Billion in Payroll $624.6 Billion Economic Output 18,121,595 jobs $506.6 Billion in payroll $1.53 Trillion total economic output
9 Why franchise? People prefer franchised businesses Most cost effective growth model Accelerated growth potential Supplements your existing distribution system Process increases your current systems, controls and management. Protect your business model Pre-empt competition People pay you to expand your business!
10 Why franchise? Businesses for which franchising work best have one or several of the following characteristics: A good track record of profitability Faster start Less Risk Relatively inexpensive to operate Purchasing power Name recognition Business support Easily duplicated Detailed systems, processes and procedures Relatively easy to operate The Benefits of Buying a Franchise
11 Franchising process Franchise feasibility and viability study Develop the concept, business and franchise model Enable the franchisor Prepare and finalise documentation Develop manuals (Usually consist of 3 sections) Recruitment & Selection of the prospective franchisee, Pre-opening manual, Daily operations manual (15 sections) Launch the franchise network Manage recruitment process
12 What can Franchisors do for you? Save you time & cost of developing the administration allowing you to focus on your business Franchise coaching Evaluate your franchise system Franchise feasibility and viability study Develop the concept, business and franchise model Enable the franchisor Draft legal documentation Franchise Association Develop processes and manuals Manage recruitment process Chair franchise forum meetings Annual franchise system review On-going support Give you the benefit of previous experience
13 What are the experience benefits? Corporate identity and brand development Training models and implementation Websites and Intranet Franchisee financing IT solutions Increasing sales techniques Alternative business solutions problem solving Ongoing involvement
14 What Makes a Franchise Successful? There are many reasons as to why you might want to franchise your business. But before you consider franchising your business, you should know precisely what makes a franchise successful. Through years of hands-on experience, I have identified an eight-part criterion that most often makes a franchise successful: 1. Business Management 2. Market Viability 3. Profit Forecasting 4. Investment Marketability 5. Strategy Development 6. Budget Analysis 7. Capital Resources 8. Business Structure
15 Can I Qualify for a Franchise? prospects you need to be a franchisee! Capital Personality Skills Experience
16 Esquires Coffee Houses International
17 Who is Esquires Coffee Houses Started in Canada 1993 The first Esquires coffeehouse opened in the suburb of Sunshine Hills, a residential district of the city of Vancouver, Canada, in 1993.Further branches were opened across Canada, before the company went international on a franchise basis. Sold the franchise in the UK and Ireland 1999 In 2002, brothers Stuart and Lewis Deeks established the Esquires brand in Australasia through a master franchise agreement with the Canadian parent. Under the name Franchise Development Ltd, they grew the business to become the leading branded chain in New Zealand by store numbers. In 2011 the Deeks sold the Australia and New Zealand franchise rights to Retail Food Group while retaining the rights to the Middle East, China and a number of other jurisdictions. In 2013 the Deeks merged their business into NZX-listed Cooks Global Foods. In April 2013, Cooks acquired the intellectual property and master franchising rights to Esquires Coffee Houses worldwide - excluding New Zealand and Australia. The company also owns wholesale businesses in related industries. Today there are more than 40 Esquires stores in Australia and New Zealand operated by Retail Food Group including two drive-thru outlets. In April 2014 Cooks Global Foods acquired the Esquires Canadian intellectual property rights, the original Esquires franchisor founded in 1993.
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19 Esquires Today 134 outlets ( ) New Zealand 45 outlets Australia 5 outlets Fiji 3 outlets China 25 outlets (12 in the pipeline) United Arab Emirates Dubai 4 outlets Bahrain 4 outlets Kuwait 6 outlets Saudi Arabia 10 outlets UK 25 outlets 8 in the pipeline Ireland 7 outlets and 3 in the pipeline New Markets Cyprus Indonesia Mongolia Malaysia Singapore Bangladesh Turkey
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28 ...with other exciting new territories pending
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30 Why is Esquires franchising popular? Easy to set up Best practices immediately no learning curve Relatively low set-up costs Brand recognition multiple locations Purchasing power Consumer confidence - no surprises Manager is the owner own boss Combined marketing, branding, etc. Increased profit Ongoing support & training 95% of all franchises are still in business after 5 years
31 What esquires can provide you with (benefits)? Corporate identity and brand development Training models and implementation Websites and Intranet IT solutions Increasing sales techniques Alternative business solutions problem solving Ongoing involvement Marketing support Product development
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35 and a new generation cafe image, bringing style and innovation for all customers
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38 creatively used to enhance the cafe experience
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42 combined with a premium food and beverage selection
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48 Our Desserts
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50 Our food display
51 Our Food Display
52 Our Food Display
53 Our Sandwiches
54 Sandwiches
55 Bagels Soups and Salads
56 Our Baked Products and Pastries
57 All aspects of the new design were developed to meet both local and global standards and conditions
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59 This ongoing development of the brand image will continue into Canada, England, Ireland and shortly... the USA
60 Continually observing local cultures and creating warm inviting environments...
61 Along with the inclusion of technological and design enhancements...
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65 Accompanying this, technological advances will allow for a refined presentation of either new or revised cafe design
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68 Making the design process... A more accurate representation More quickly accomplished A superior board room presentation A greater understanding of the working cafe via a 3D concept
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70 Can I Qualify for Esquires Franchise? prospects you need to be a franchisee! Capital Personality Skills Experience
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